This paper develops a theory of board power when the board of directors collects private information about the CEOs ability to make value-increasing investments. When CEO ability is unknown ex-ante, we show that board power can be helpful in inducing information production by the board and in...

Complex investments are investments that are difficult to value in the short-term. In this paper, we analyze the incentives of a manager who is compensated based on short-term stock prices to invest in complex long-term investments. In particular, we explore how the manager's investment decision...